Governance Committee for the Monterey Peninsula Water Supply Project
California American Water Ÿ Monterey County Board of Supervisors Monterey Peninsula Regional Water Authority Ÿ Monterey Peninsula Water Management District
FINAL MINUTES Regular Meeting Governance Committee for the Monterey Peninsula Water Supply Project July 11, 2013
Call to Order:		The meeting was called to order at 1:05 pm in the conference room of the Monterey Peninsula Water Management District offices.
Members Present:		Jeanne Byrne, representing Monterey Peninsula Water Management District (alternate to Robert S. Brower, Sr.) Jason Burnett, Chair, representing Monterey Peninsula Regional Water Authority (JPA) David Potter, representing Monterey County Board of Supervisors Robert MacLean, representing California American Water (Cal Am)
Members Absent:		Robert S. Brower, Sr., Vice Chair, representing Monterey Peninsula Water Management District
Pledge of Allegiance:		The assembly recited the Pledge of Allegiance.
Public Comments:		Burnett reported that Russ McGlothlin is working on amendments to the Monterey Peninsula Water Supply Project Governance Agreement that would modify the requirement that California American Water file a Tier 2 Advice Letter regarding the Groundwater Replenishment Project. The goal is to that each Governance Committee member agency would approve the amended agreement by the end of July 2013.
Agenda Items
The Chair received public comment on each agenda item.
Action Items
1.	Adopt Minutes of June 13 , 2013 Committee Meetings
	On a motion by Potter and second of Byrne, the minutes were approved on a vote of 3 – 0 by Byrne, Potter and Burnett.
2.	Consider Request that Governance Committee Meetings by Recorded and Televised There was consensus among the committee members that the meetings should be recorded and the video uploaded to the Water Management District’s Governance Committee website, if that could be accomplished at no cost with assistance from Water Management District or California American Water staff. Cal Am may be able include the Governance Committee website link on its Monterey Peninsula Water Supply Project webpage. Public Comment: Sue McCloud suggested that a link to the Governance Committee webpage should be added to California American Water’s Monterey Peninsula Water Supply Project website.
Discussion Items
3.	Update from California American Water on Procurement of Desalination Project Design/Build Firm Anthony Cerasoulo, Vice President, Legal – Operations for Cal-Am, reported that Cal-Am representatives were in the process of meeting with the five firms that were selected to receive the project RFP. The firms have until July 31, 2013 to submit to Cal-Am any questions or comments they have. By mid-August Cal-Am will issue responses. The proposals must be submitted by September 17, 2013. The five firms selected to bid on the project are listed on the Monterey Peninsula Water Supply Project webpage. MacLean noted that Cal-Am has provided the firms with renderings of desalination facility designs submitted by the Cal Poly student architectural design teams. The firms were advised to view these as conceptual designs that could be incorporated into the proposals if the design elements did not increase the project cost.
4.	Update on Development of Landfill Gas Term Sheet Jim Cullum, Executive Director of the Monterey Peninsula Regional Water Authority, reported that the team he is working with to the develop the term sheet includes David Stoldt, Water Management District; Brent Hageman, Monterey Regional Water Pollution Control Agency; Richard Svindland, Cal Am; and William Merry, Monterey Regional Waste Management District (Waste Management). Cullum explained that the objective is to negotiate the terms for Waste Management to sell power to Cal Am, when it is available, for operation of the desalination plant. Waste Management could sell power to Cal Am and to other customers. Power could be provided to the desal plant from either Waste Management or PG&E at the most reasonable cost as needed. Waste Management must sell its power at an optimum price, which will be compared with the PG&E rate. Renewable energy credits (RACs) are available but there are questions about who owns them. Also, mandatory certificates cost more than voluntary certificates. Waste Management is considering selling the RACs on the open market, as Cal Am is not required to use them. If Cal Am is required to develop air quality mitigations, it may need the RACs. MacLean stated that Waste Management had suggested to him that Cal Am should pay for Waste Management’s efforts towards developing the terms for an agreement on use of the alternate power source. MacLean asked for the opinion of the committee members on this proposal. Byrne and Potter did not support the idea. Cullum noted that Merry’s concern is that Waste Management would invest in plans for expansion of its facility to meet the requirements of the desal plant, and ultimately Cal Am could decide not to utilize that power
	source. Burnett stated that the Governance Committee has the authority to make a decision on use of the alternate power source, and has expressed unanimous support for the pursuit of renewable power for the desal project. MacLean stated that Cal Am is agreeable to funding the desal project power analysis, and the analysis of Waste Management’s operations and ability to provide power to the desal plant. Public Comment: Sue McCloud stated that the cost for infrastructure improvements at Waste Management are estimated to be $22 million. Waste Management cannot undersell the power source in order to facilitate the desal project.
5.	Discussion of Items to be Placed on Future Agendas A progress report on development of the landfill gas term sheet may be presented in Fall of 2013.
Adjournment
The meeting was adjourned at 1:40 pm. U:\Arlene\word\2013\GovernanceCommittee\Minutes\FINAL20130711.docx